( World Bank)

[suriya@xxxxxxxxxxxx]

(World Bank)

 DHAKA, Oct 12 (Reuters) - Bangladesh Finance Minister S.A.M.S. Kibria said
on Monday the  
World Bank and International Monetary Fund would provide $330 million in
emergency credit to his  
country, reeling from recent devastating floods. 

 "We sought the money for balance of payment support and import of
essential commodities,"  
Kibria told a news conference. 

 The loan was expected to be offered later this month as the country's
foreign  
exchange reserves were under stress because of imports of foodgrains, he
said. 

 The fresh appeal for $200 million from the World Bank and $130 million from  
IMF was in addition to $879.5 million sought from international donors for
emergency relief and  
post-flood rehabilitation, he said. 

 Since the floods started in early July, more than 1,500 people have been
killed  
and over two million tonnes of rice have been destroyed in the fields. 

 The floods, which inundated three-quarters of the country, affected more
than 25 million people  
and caused huge damage to industry and infrastructure. 

 "We need to import food and that may adversely affect the country's
foreign exchange  
reserves," Kibria said, adding the pressure on the reserves was severe
mainly due to crop  
losses. 

 "The reserves were $1.87 billion on September 29." 

 The Bangladeshi government is importing one million tonnes of foodgrains,
mostly rice. The private  
sector is bringing in another two million tonnes of rice to make up for the  
flood losses and the usual two million tonnes annual shortfall. 

 Kibria said he attended the recent World Bank/IMF meeting in Washington
when the donors  
assured Bangladesh of the fresh assistance. 

 However, they stressed Bangladesh should also endeavour to carry out
economic reforms, he said,  
adding the World Bank and the Asian Development Bank (ADB) were assessing
the cost of  
rehabilitation of the flood-damaged economy. 

 The government has said the estimated economic loss due to the floods was
$4.3  
billion. 

 "I believe we will be able to put the country's economy back on track  
through the government's efforts and the international assistance," Kibria
said. 

 But Bangladesh was passing through a critical period because of the
economic turmoil in  
east Asian nations and many other countries in Europe and Latin America,
the minister said.  

 "Our earnings from remittances sent by Bangladeshis working abroad may
slow down and many  
of them may even lose their jobs." 

 Bangladeshis working abroad send home more than $1.0 billion every year.